Radical Product Innovation in Network Economies

Diploma Thesis from the year 2001 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 1,0, Leipzig Graduate School of Management (Betriebswirtschaft), language: English, abstract: Inhaltsangabe:Abstract:
The focus of this thesis is set on radical product introductions in network markets. It appears that these have to overcome significant impediments to reach critical mass in the form of network externalities. A literature overview of economic analysis in this field, including network types, value of networks, path dependencies and lock-ins, as well as a detailed critique of these frameworks, is provided. We then discuss several possible avenues to overcome these challenges, some of which relate to the optimal boundaries of the firm, as well as some which attempt to tackle market externalities. From these, a market based framework will be developed as a guideline for radical product introductions into network economies. We analyse business cases in light of this framework in a selection of historic examples. In addition, as we find that contradictory arguments abound in chapter three, a second approach is proposed tentatively as basis for further research.
Besides its theoretic approach this thesis also provides real world examples from different geographic areas, such as the U.S., Europe and Japan. A special emphasis will be put on the market of payment solutions now emerging in Europe, and, in particular, on the German start-up Paybox.net AG.


Inhaltsverzeichnis:Table of Contents:
ContentsI
AcknowledgementsIII
List of FiguresIV
List of TablesV
List of AbbreviationsVI
List of SymbolsIX
AbstractX
1.Introduction1
1.1The Business Challenge1
1.2Scope and Outline of this Thesis2
1.3Establishing an M-Payment System: The Story of Paybox.net AG4
2.The Environment: Impediments for Product Introductions6
2.1Chapter Overview6
2.2Radical Innovations and Network Economies6
Introducing a Radical Innovation6
An Intr